US trucker Jevic files for bankruptcy, shuts down

By Emily Chasan

NEW YORK, May 21 (Reuters) - U.S. trucking company Jevic Transportation Inc has filed for bankruptcy protection because of the tight credit market and high costs including the price of fuel, and has stopped its operations, according to its website.

Jevic, which specialized in less-than-truckload (LTL) shipments, was bought by an affiliate of private equity firm Sun Capital in July 2006.

The company, which employed about 1,500 people, filed for protection from creditors late on Tuesday in U.S. Bankruptcy Court in Delaware.

"The current high fuel costs, economic downturn, increasing insurance costs, and tightening credit markets have made this decision necessary," Jevic's chief executive David Gorman said in a statement on its website.

Trucking companies have been hit by soaring fuel prices, with diesel used for big-rig trucks costing more than $4 a gallon.

In its bankruptcy filing, Jevic estimated assets of $50 million to $100 million, and liabilities of the same.

Two workers began a proceeding seeking class action status against the company and Sun Capital on Wednesday in Delaware Bankruptcy Court. They want 60 days back pay and benefits for being laid off without warning on Monday, according to court documents.

A Sun Capital spokesman did not return a call seeking comment. (Editing by Toni Reinhold)